After two and a half years of uncertainty "OPEC took the decision on Wednesday to control the market by agreeing on oil output cuts in a first deal since 2008, with group's leader Saudi Arabia softening its stance.
|OPEC deal will help raise Oil price|
The OPEC production ceilings abandoned a year ago would effectively be re-established through this move. Traders were impressed OPEC had managed to reach a compromise and prices of Oil jumped more than 5 percent to trade above $48 per barrel as of 2015 GMT
The OPEC agreement to cut oil output help the U.S. dollar to an eight-day high against the yen on Thursday while European banking sector easing concerns helped the euro gain.
The dollar against the yen was up 0.92 percent at 101.58 yen .The euro was up to 0.12 percent against the U.S. dollar at $1.1228 reversing losses sustained on European banking sector concern.
The deal helped raise oil exporting countries’ currencies o on Wednesday but by Thursday there was only a slight change based on concerns over implementing the deal and the feasibility of OPEC.
If going by the words of David Gilmore, partner at FX Analytics in Essex, Connecticut he said “There is reason to think that being skeptical about OPEC production quotas is a reasonable approach,”
Also up 0.06 percent at 95.494 .DXY is the dollar index which measures the greenback against a basket of six major currencies,
Omer Esiner, chief market analyst at Commonwealth Foreign Exchange Inc. in Washington said "An orderly rise in oil prices would signal a broader sense of global market stability," and “It could be inflationary, the type of argument for higher rates from the Federal Reserve."
Saudi and Iran are the main economies in the Middle East and seem to be making the laws. Their economies depend heavily on oil.After sanctions , Iran is suffering less pressure from the halving in crude prices while Saudi Arabia faces a stagnating economy and is being forced to cut the salaries of government employees after the second year of budget deficits with a record $98 billion gap last year.